Amazon.com (AMZN) 10-Q 29 Oct 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 20, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	000-22513
Entity Registrant Name	AMAZON.COM, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	91-1646860
Entity Address, Address Line One	410 Terry Avenue North
Entity Address, City or Town	Seattle,
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98109-5210
City Area Code	206
Local Phone Number	266-1000
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	AMZN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		507,147,620
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001018724

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Cash Flows [Abstract]
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$ 40,667	$ 37,842	$ 42,377	$ 36,410	$ 30,202	$ 23,554
OPERATING ACTIVITIES:
Net income	3,156	6,331	19,041	14,109	26,263	17,377
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other	8,948	6,523	24,494	17,633	32,112	23,803
Stock-based compensation	3,180	2,288	9,077	6,646	11,639	8,486
Other operating expense (income), net	24	67	72	416	(415)	466
Other expense (income), net	340	(1,051)	(2,374)	(1,255)	(3,701)	(1,749)
Deferred income taxes	909	295	3,313	1,082	1,677	1,267
Changes in operating assets and liabilities:
Inventories	(7,059)	(3,899)	(7,572)	(3,178)	(7,242)	(4,694)
Accounts receivable, net and other	(4,890)	(2,016)	(11,607)	(3,608)	(16,168)	(7,515)
Accounts payable	3,832	3,658	(4,387)	4,231	8,863	14,914
Accrued expenses and other	(1,465)	(310)	(7,210)	(1,375)	(84)	1,520
Unearned revenue	338	78	1,394	932	1,727	1,417
Net cash provided by (used in) operating activities	7,313	11,964	24,241	35,633	54,671	55,292
INVESTING ACTIVITIES:
Purchases of property and equipment	(15,748)	(11,063)	(42,118)	(25,317)	(56,941)	(30,629)
Proceeds from property and equipment sales and incentives	997	1,255	3,192	3,467	4,822	4,838
Acquisitions, net of cash acquired, and other	(654)	(1,735)	(1,604)	(1,945)	(1,985)	(2,722)
Sales and maturities of marketable securities	15,808	13,135	46,847	32,899	64,185	40,525
Purchases of marketable securities	(15,231)	(17,468)	(51,891)	(51,678)	(72,692)	(58,122)
Net cash provided by (used in) investing activities	(14,828)	(15,876)	(45,574)	(42,574)	(62,611)	(46,110)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other	2,187	1,311	5,289	4,361	7,724	5,042
Repayments of short-term debt, and other	(1,917)	(1,349)	(5,094)	(3,886)	(7,385)	(4,701)
Proceeds from long-term debt	176	0	18,803	9,994	19,334	10,412
Repayments of long-term debt	(509)	(1,198)	(589)	(1,439)	(703)	(2,490)
Principal repayments of finance leases	(2,693)	(2,857)	(8,903)	(8,274)	(11,271)	(11,054)
Principal repayments of financing obligations	(20)	(12)	(115)	(44)	(124)	(68)
Net cash provided by (used in) financing activities	(2,776)	(4,105)	9,391	712	7,575	(2,859)
Foreign currency effect on cash, cash equivalents, and restricted cash	(199)	377	(258)	21	340	325
Net increase (decrease) in cash, cash equivalents, and restricted cash	(10,490)	(7,640)	(12,200)	(6,208)	(25)	6,648
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 30,177	$ 30,202	$ 30,177	$ 30,202	$ 30,177	$ 30,202

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total net sales	$ 110,812	$ 96,145	$ 332,410	$ 260,509
Operating expenses:
Cost of sales	62,930	57,106	189,509	154,023
Fulfillment	18,498	14,705	52,666	40,043
Technology and content	14,380	10,976	40,739	30,691
Marketing	8,010	5,434	21,741	14,605
General and administrative	2,153	1,668	6,298	4,700
Other operating expense (income), net	(11)	62	38	421
Total operating expenses	105,960	89,951	310,991	244,483
Operating income	4,852	6,194	21,419	16,026
Interest income	119	118	330	455
Interest expense	(493)	(428)	(1,327)	(1,233)
Other income (expense), net	(163)	925	2,795	1,165
Total non-operating income (expense)	(537)	615	1,798	387
Income before income taxes	4,315	6,809	23,217	16,413
Provision for income taxes	(1,155)	(569)	(4,179)	(2,298)
Equity-method investment activity, net of tax	(4)	91	3	(6)
Net income	$ 3,156	$ 6,331	$ 19,041	$ 14,109
Basic earnings per share (in usd per share)	$ 6.23	$ 12.63	$ 37.69	$ 28.24
Diluted earnings per share (in usd per share)	$ 6.12	$ 12.37	$ 37.02	$ 27.72
Weighted-average shares used in computation of earnings per share:
Basic (in shares)	507	501	505	500
Diluted (in shares)	515	512	514	509
Product
Total net sales	$ 54,876	$ 52,774	$ 170,371	$ 144,859
Service
Total net sales	$ 55,936	$ 43,371	$ 162,039	$ 115,650

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 3,156	$ 6,331	$ 19,041	$ 14,109
Net change in foreign currency translation adjustments:
Foreign currency translation adjustments, net of tax of $(15), $39, $(2) and $35	(537)	408	(752)	(260)
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $(10), $3, $(73) and $31	(5)	35	(109)	239
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $5, $5, $7 and $13	(8)	(17)	(34)	(22)
Net unrealized gains (losses) on available-for-sale debt securities	(13)	18	(143)	217
Total other comprehensive income (loss)	(550)	426	(895)	(43)
Comprehensive income	$ 2,606	$ 6,757	$ 18,146	$ 14,066

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 39	$ (15)	$ 35	$ (2)
Unrealized gains (losses), tax	3	(10)	31	(73)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” tax	$ 5	$ 5	$ 13	$ 7

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 29,944	$ 42,122
Marketable securities	49,044	42,274
Inventories	30,933	23,795
Accounts receivable, net and other	28,610	24,542
Total current assets	138,531	132,733
Property and equipment, net	147,152	113,114
Operating leases	52,151	37,553
Goodwill	15,345	15,017
Other assets	29,227	22,778
Total assets	382,406	321,195
Current liabilities:
Accounts payable	71,474	72,539
Accrued expenses and other	41,546	44,138
Unearned revenue	10,974	9,708
Total current liabilities	123,994	126,385
Long-term lease liabilities	63,848	52,573
Long-term debt	50,055	31,816
Other long-term liabilities	23,945	17,017
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock, $0.01 par value: Authorized shares - 500; Issued and outstanding shares - none	0	0
Common stock, $0.01 par value: Authorized shares - 5,000; Issued shares - 527 and 530 Outstanding shares - 503 and 507	5	5
Treasury stock, at cost	(1,837)	(1,837)
Additional paid-in capital	51,879	42,865
Accumulated other comprehensive income (loss)	(1,075)	(180)
Retained earnings	71,592	52,551
Total stockholders’ equity	120,564	93,404
Total liabilities and stockholders’ equity	$ 382,406	$ 321,195

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	500,000,000	500,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	5,000,000,000	5,000,000,000
Common stock, issued (in shares)	530,000,000	527,000,000
Common stock, outstanding (in shares)	507,000,000	503,000,000

Accounting Policies and Supplem

Accounting Policies and Supplemental Disclosures	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Accounting Policies and Supplemental Disclosures	ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2021 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2020 Annual Report on Form 10-K. Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of its wholly-owned subsidiaries and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and certain entities that support our seller lending financing activities. Intercompany balances and transactions between consolidated entities are eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, and valuation and impairment of investments. Actual results could differ materially from these estimates. Supplemental Cash Flow Information The following table shows supplemental cash flow information (in millions): Three Months Ended Nine Months Ended Twelve Months Ended 2020 2021 2020 2021 2020 2021 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt $ 285 $ 276 $ 715 $ 731 $ 869 $ 933 Cash paid for operating leases 1,159 1,812 3,275 5,029 4,215 6,230 Cash paid for interest on finance leases 155 121 484 407 650 535 Cash paid for interest on financing obligations 28 48 71 116 90 147 Cash paid for income taxes, net of refunds 502 750 1,293 3,354 1,481 3,774 Assets acquired under operating leases 6,115 10,447 11,870 19,561 14,346 23,908 Property and equipment acquired under finance leases 3,571 1,744 8,892 5,453 13,075 8,149 Property and equipment acquired under build-to-suit arrangements 366 1,721 1,228 3,702 1,480 4,742 Earnings Per Share Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. The following table shows the calculation of diluted shares (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Shares used in computation of basic earnings per share 501 507 500 505 Total dilutive effect of outstanding stock awards 11 8 9 9 Shares used in computation of diluted earnings per share 512 515 509 514 Other Income (Expense), Net Other income (expense), net, is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Marketable equity securities valuation gains (losses) $ 200 $ (129) $ 404 $ (48) Equity warrant valuation gains (losses) 300 (50) 566 1,194 Upward adjustments relating to equity investments in private companies 320 155 320 1,661 Foreign currency gains (losses) 112 (107) (97) (28) Other, net (7) (32) (28) 16 Total other income (expense), net 925 (163) 1,165 2,795 Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The inventory valuation allowance, representing a write-down of inventory, was $2.3 billion and $2.4 billion as of December 31, 2020 and September 30, 2021. Accounts Receivable, Net and Other Included in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2020 and September 30, 2021, customer receivables, net, were $14.8 billion and $17.7 billion, vendor receivables, net, were $4.8 billion and $4.0 billion, and seller receivables, net, were $381 million and $858 million. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory. We estimate losses on receivables based on expected losses, including our historical experience of actual losses. The allowance for doubtful accounts was $1.1 billion and $951 million as of December 31, 2020 and September 30, 2021. Digital Video and Music Content The total capitalized costs of video, which is primarily released content, and music as of December 31, 2020 and September 30, 2021 were $6.8 billion and $10.1 billion. Total video and music expense was $2.8 billion and $3.3 billion in Q3 2020 and Q3 2021, and $8.0 billion and $9.4 billion for the nine months ended September 30, 2020 and 2021. Unearned Revenue Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2020 was $11.6 billion, of which $8.4 billion was recognized as revenue during the nine months ended September 30, 2021. Included in “Other long-term liabilities” on our consolidated balance sheets was $1.9 billion and $2.0 billion of unearned revenue as of December 31, 2020 and September 30, 2021. Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $66.3 billion as of September 30, 2021. The weighted-average remaining life of our long-term contracts is 3.7 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Financial Instruments	FINANCIAL INSTRUMENTS Cash, Cash Equivalents, Restricted Cash, and Marketable Securities As of December 31, 2020 and September 30, 2021, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S. and foreign government and agency securities, other investment grade securities, and marketable equity securities. Cash equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. We did not hold significant amounts of marketable securities categorized as Level 3 assets as of December 31, 2020 and September 30, 2021. The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): December 31, 2020 September 30, 2021 Total Cost or Gross Gross Total Cash $ 10,063 $ 10,083 $ — — $ 10,083 Level 1 securities: Money market funds 27,430 18,000 — — 18,000 Equity securities (1) 617 1,633 Level 2 securities: Foreign government and agency securities 5,131 178 1 — 179 U.S. government and agency securities 7,439 5,385 15 (7) 5,393 Corporate debt securities 29,988 36,775 152 (17) 36,910 Asset-backed securities 3,235 5,936 17 (5) 5,948 Other fixed income securities 710 714 4 (1) 717 Equity securities (1) 40 361 $ 84,653 $ 77,071 $ 189 $ (30) $ 79,224 Less: Restricted cash, cash equivalents, and marketable securities (2) (257) (236) Total cash, cash equivalents, and marketable securities $ 84,396 $ 78,988 ___________________ (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $150 million and $(116) million in Q3 2020 and Q3 2021, and $351 million and $6 million for the nine months ended September 30, 2020 and 2021. (2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.” The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of September 30, 2021 (in millions): Amortized Estimated Due within one year $ 38,618 $ 38,628 Due after one year through five years 22,603 22,735 Due after five years through ten years 1,809 1,814 Due after ten years 3,958 3,970 Total $ 66,988 $ 67,147 Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. Equity Warrants and Non-Marketable Equity Investments We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2020 and September 30, 2021, these warrants had a fair value of $3.0 billion and $3.4 billion, and are recorded within “Other assets” on our consolidated balance sheets with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations. These warrants are primarily classified as Level 2 assets. As of December 31, 2020 and September 30, 2021, equity investments not accounted for under the equity-method and without readily determinable fair values, including preferred stock of Rivian Automotive, Inc. representing an approximately 20% ownership interest, had a carrying value of $2.7 billion and $3.8 billion, and are recorded within “Other assets” on our consolidated balance sheets with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations. Consolidated Statements of Cash Flows Reconciliation The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions): December 31, 2020 September 30, 2021 Cash and cash equivalents $ 42,122 $ 29,944 Restricted cash included in accounts receivable, net and other 233 218 Restricted cash included in other assets 22 15 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 42,377 $ 30,177

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Leases	LEASES We have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, physical store, data center, and sortation facilities as well as server and networking equipment, vehicles, and aircraft. Gross assets acquired under finance leases, inclusive of those where title transfers at the end of the lease, are recorded in “ Property and equipment, net Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Operating lease cost $ 1,334 $ 1,911 $ 3,551 $ 5,129 Finance lease cost: Amortization of lease assets 2,200 2,497 6,123 7,442 Interest on lease liabilities 154 114 474 365 Finance lease cost 2,354 2,611 6,597 7,807 Variable lease cost 308 372 866 1,135 Total lease cost $ 3,996 $ 4,894 $ 11,014 $ 14,071 Other information about lease amounts recognized in our consolidated financial statements is as follows: December 31, 2020 September 30, 2021 Weighted-average remaining lease term – operating leases 10.7 years 11.3 years Weighted-average remaining lease term – finance leases 6.2 years 7.4 years Weighted-average discount rate – operating leases 2.5 % 2.3 % Weighted-average discount rate – finance leases 2.1 % 2.1 % Our lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance Leases Total Gross lease liabilities $ 44,833 $ 30,437 $ 75,270 Less: imputed interest (5,734) (2,003) (7,737) Present value of lease liabilities 39,099 28,434 67,533 Less: current portion of lease liabilities (4,586) (10,374) (14,960) Total long-term lease liabilities $ 34,513 $ 18,060 $ 52,573 September 30, 2021 Operating Leases Finance Leases Total Gross lease liabilities $ 61,591 $ 26,618 $ 88,209 Less: imputed interest (7,637) (2,099) (9,736) Present value of lease liabilities 53,954 24,519 78,473 Less: current portion of lease liabilities (5,913) (8,712) (14,625) Total long-term lease liabilities $ 48,041 $ 15,807 $ 63,848
Leases	LEASES We have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, physical store, data center, and sortation facilities as well as server and networking equipment, vehicles, and aircraft. Gross assets acquired under finance leases, inclusive of those where title transfers at the end of the lease, are recorded in “ Property and equipment, net Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Operating lease cost $ 1,334 $ 1,911 $ 3,551 $ 5,129 Finance lease cost: Amortization of lease assets 2,200 2,497 6,123 7,442 Interest on lease liabilities 154 114 474 365 Finance lease cost 2,354 2,611 6,597 7,807 Variable lease cost 308 372 866 1,135 Total lease cost $ 3,996 $ 4,894 $ 11,014 $ 14,071 Other information about lease amounts recognized in our consolidated financial statements is as follows: December 31, 2020 September 30, 2021 Weighted-average remaining lease term – operating leases 10.7 years 11.3 years Weighted-average remaining lease term – finance leases 6.2 years 7.4 years Weighted-average discount rate – operating leases 2.5 % 2.3 % Weighted-average discount rate – finance leases 2.1 % 2.1 % Our lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance Leases Total Gross lease liabilities $ 44,833 $ 30,437 $ 75,270 Less: imputed interest (5,734) (2,003) (7,737) Present value of lease liabilities 39,099 28,434 67,533 Less: current portion of lease liabilities (4,586) (10,374) (14,960) Total long-term lease liabilities $ 34,513 $ 18,060 $ 52,573 September 30, 2021 Operating Leases Finance Leases Total Gross lease liabilities $ 61,591 $ 26,618 $ 88,209 Less: imputed interest (7,637) (2,099) (9,736) Present value of lease liabilities 53,954 24,519 78,473 Less: current portion of lease liabilities (5,913) (8,712) (14,625) Total long-term lease liabilities $ 48,041 $ 15,807 $ 63,848

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Commitments The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of September 30, 2021 (in millions): Three Months Ended December 31, Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Total Long-term debt principal and interest $ 1,418 $ 2,872 $ 4,636 $ 7,014 $ 3,400 $ 56,612 $ 75,952 Operating lease liabilities 1,761 7,026 6,608 6,074 5,576 34,546 61,591 Finance lease liabilities, including interest 2,087 8,331 4,620 2,105 1,202 8,273 26,618 Financing obligations, including interest (1) 98 393 399 397 387 6,427 8,101 Leases not yet commenced 266 1,448 1,878 2,094 2,096 23,973 31,755 Unconditional purchase obligations (2) 423 5,819 5,525 5,009 4,188 13,626 34,590 Other commitments (3)(4) 1,785 3,235 1,524 1,164 957 11,629 20,294 Total commitments $ 7,838 $ 29,124 $ 25,190 $ 23,857 $ 17,806 $ 155,086 $ 258,901 ___________________ (1) Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $111 million and $185 million are recorded within “Accrued expenses and other” and $3.4 billion and $5.8 billion are recorded within “Other long-term liabilities” as of December 31, 2020 and September 30, 2021. The weighted-average remaining term of the financing obligations was 19.0 and 19.1 years and the weighted-average imputed interest rate was 3.8% and 3.4% as of December 31, 2020 and September 30, 2021. (2) Includes unconditional purchase obligations related to certain products offered in our Whole Foods Market stores and long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those digital media content agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. (3) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction, asset retirement obligations, and liabilities associated with digital media content agreements with initial terms greater than one year. (4) Excludes approximately $2.9 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. In addition, in May 2021, we entered into an agreement to acquire MGM Holdings Inc. (“MGM”) for approximately $8.5 billion, including MGM’s debt, subject to customary closing conditions. We expect to fund this acquisition with cash on hand. Other Contingencies We are disputing claims and denials of refunds or credits related to various indirect taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit these taxes. If the relevant taxing authorities were to prevail, we could be subject to significant additional tax costs. For example, in June 2017, the State of South Carolina issued an assessment for uncollected sales and use taxes for the period from January 2016 to March 2016, including interest and penalties. South Carolina is alleging that we should have collected sales and use taxes on transactions by our third-party sellers. In September 2019, the South Carolina Administrative Law Court ruled in favor of the Department of Revenue and we have appealed the decision to the state Court of Appeals. We believe the assessment is without merit and intend to defend ourselves vigorously in this matter. Legal Proceedings The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2020 Annual Report on Form 10-K and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the period ended June 30, 2021, as supplemented by the following: Following an investigation that included an initial Statement of Objections, in September 2021 the Italian Competition Authority issued a subsequent Statement of Objections against Amazon Services Europe S.à r.l., Amazon Europe Core S.à r.l., Amazon EU S.à r.l., Amazon Italia Services S.r.l., and Amazon Italia Logistica S.r.l. alleging that certain of our marketplace and logistics practices in Italy infringe EU competition rules. The subsequent Statement of Objections seeks to impose unspecified fines and remedial actions that could materially impact our operations in Italy. We disagree with the allegations and intend to defend ourselves vigorously in this matter. In addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes, goods and services offered by us and by third parties, and other matters. The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that could affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and changes to our accruals and disclosures as appropriate. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows. See also “Note 7 — Income Taxes.”

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Debt	DEBT As of September 30, 2021, we had $50.7 billion of unsecured senior notes outstanding (the “Notes”). We issued $18.5 billion of Notes in May 2021, of which $1.0 billion was issued for green or social projects, such as projects related to clean transportation, renewable energy, sustainable buildings, affordable housing, or socioeconomic advancement and empowerment, and the remainder for general corporate purposes. We also had other long-term debt and borrowings under our credit facility of $924 million and $626 million as of December 31, 2020 and September 30, 2021. Our total long-term debt obligations are as follows (in millions): Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2020 September 30, 2021 2012 Notes issuance of $3.0 billion 2022 2.50% 2.66% 1,250 1,250 2014 Notes issuance of $6.0 billion 2021 - 2044 3.30% - 4.95% 3.43% - 5.11% 5,000 5,000 2017 Notes issuance of $17.0 billion 2023 - 2057 2.40% - 5.20% 2.56% - 4.33% 16,000 16,000 2020 Notes issuance of $10.0 billion 2023 - 2060 0.40% - 2.70% 0.56% - 2.77% 10,000 10,000 2021 Notes issuance of $18.5 billion 2023 - 2061 0.25% - 3.25% 0.35% - 3.31% — 18,500 Credit Facility 338 626 Other long-term debt 586 — Total face value of long-term debt 33,174 51,376 Unamortized discount and issuance costs, net (203) (321) Less current portion of long-term debt (1,155) (1,000) Long-term debt $ 31,816 $ 50,055 ___________________ (1) The weighted-average remaining lives of the 2012, 2014, 2017, 2020, and 2021 Notes were 1.2, 11.1, 15.5, 18.0, and 14.6 years as of September 30, 2021. The combined weighted-average remaining life of the Notes was 14.8 years as of September 30, 2021. Interest on the Notes is payable semi-annually in arrears. We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices. We are not subject to any financial covenants under the Notes. The estimated fair value of the Notes was approximately $37.7 billion and $54.3 billion as of December 31, 2020 and September 30, 2021, which is based on quoted prices for our debt as of those dates. We have a $740 million secured revolving credit facility with a lender that is secured by certain seller receivables, which we may from time to time increase in the future subject to lender approval (the “Credit Facility”). The Credit Facility is available until October 2022, bears interest at the London interbank offered rate (“LIBOR”) plus 1.40%, and has a commitment fee of 0.50% on the undrawn portion. There were $338 million and $626 million of borrowings outstanding under the Credit Facility as of December 31, 2020 and September 30, 2021, which had a weighted-average interest rate of 3.0% and 2.8%, respectively. As of December 31, 2020 and September 30, 2021, we have pledged $398 million and $719 million of our cash and seller receivables as collateral for debt related to our Credit Facility. The estimated fair value of the Credit Facility, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2020 and September 30, 2021. We have U.S. Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $10.0 billion (including up to €3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed 397 days from the date of issue. There were $725 million of borrowings outstanding under the Commercial Paper Programs as of December 31, 2020 and September 30, 2021, which were included in “Accrued expenses and other” on our consolidated balance sheets and had a weighted-average effective interest rate, including issuance costs, of 0.11% and 0.07%, respectively. We use the net proceeds from the issuance of commercial paper for general corporate purposes. We also have a $7.0 billion unsecured revolving credit facility with a syndicate of lenders with a term that extends to June 2023 (the “Credit Agreement”). It may be extended for up to three additional one-year terms if approved by the lenders. The interest rate applicable to outstanding balances under the amended and restated Credit Agreement is LIBOR plus 0.50%, with a commitment fee of 0.04% on the undrawn portion of the credit facility. There were no borrowings outstanding under the Credit Agreement as of December 31, 2020 and September 30, 2021.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY Stock Repurchase Activity In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration. There were no repurchases of common stock during the nine months ended September 30, 2020 or 2021. Stock Award Activity Common shares outstanding plus shares underlying outstanding stock awards totaled 518 million and 523 million as of December 31, 2020 and September 30, 2021. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. Stock-based compensation expense is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Cost of sales $ 75 $ 126 $ 193 $ 361 Fulfillment 316 473 993 1,381 Technology and content 1,267 1,627 3,649 4,742 Marketing 446 657 1,233 1,804 General and administrative 184 297 578 789 Total stock-based compensation expense $ 2,288 $ 3,180 $ 6,646 $ 9,077 The following table summarizes our restricted stock unit activity for the nine months ended September 30, 2021 (in millions): Number of Units Weighted-Average Outstanding as of December 31, 2020 15.2 $ 2,004 Units granted 5.7 3,334 Units vested (3.7) 1,624 Units forfeited (1.6) 2,232 Outstanding as of September 30, 2021 15.6 2,552 Scheduled vesting for outstanding restricted stock units as of September 30, 2021, is as follows (in millions): Three Months Ended December 31, Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Total Scheduled vesting — restricted stock units 1.8 5.5 5.2 2.1 0.7 0.3 15.6 As of September 30, 2021, there was $18.2 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of 1.1 years. The estimated forfeiture rate as of December 31, 2020 and September 30, 2021 was 27%. Changes in our estimates and assumptions relating to forfeitures may cause us to realize material changes in stock-based compensation expense in the future. Changes in Stockholders’ Equity The following table shows changes in stockholders’ equity (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Total beginning stockholders’ equity $ 73,728 $ 114,803 $ 62,060 $ 93,404 Beginning and ending common stock 5 5 5 5 Beginning and ending treasury stock (1,837) (1,837) (1,837) (1,837) Beginning additional paid-in capital 38,017 48,724 33,658 42,865 Stock-based compensation and issuance of employee benefit plan stock 2,290 3,155 6,649 9,014 Ending additional paid-in capital 40,307 51,879 40,307 51,879 Beginning accumulated other comprehensive income (loss) (1,455) (525) (986) (180) Other comprehensive income (loss) 426 (550) (43) (895) Ending accumulated other comprehensive income (loss) (1,029) (1,075) (1,029) (1,075) Beginning retained earnings 38,998 68,436 31,220 52,551 Net income 6,331 3,156 14,109 19,041 Ending retained earnings 45,329 71,592 45,329 71,592 Total ending stockholders’ equity $ 82,775 $ 120,564 $ 82,775 $ 120,564

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXESOur tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, developments in tax controversies, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax benefits are not recognized. Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. In addition, we record valuation allowances against deferred tax assets when there is uncertainty about our ability to generate future income in relevant jurisdictions, and the effects of the COVID-19 pandemic on our business make estimates of future income more challenging. Since Q2 2017, we have recorded a valuation allowance against our net deferred tax assets in Luxembourg. There is still significant uncertainty whether our income in Luxembourg is sustainable in the future and we will maintain the valuation allowance until sufficient positive evidence exists to support a release of the valuation allowance. For 2021, we estimate that our effective tax rate will be favorably affected by the impact of excess tax benefits from stock-based compensation and the U.S. federal research and development credit and adversely affected by state income taxes. Our income tax provisions for the nine months ended September 30, 2020 and 2021 were $2.3 billion and $4.2 billion, which included $1.5 billion and $1.7 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation and audit-related developments. Cash paid for income taxes, net of refunds was $502 million and $750 million in Q3 2020 and Q3 2021, and $1.3 billion and $3.4 billion for the nine months ended September 30, 2020 and 2021. As of December 31, 2020 and September 30, 2021, tax contingencies were approximately $2.8 billion and $2.9 billion. Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies. The timing of the resolution of income tax controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax controversies in one or more jurisdictions. These assessments or settlements could result in changes to our contingencies related to positions on prior years’ tax filings. We are under examination, or may be subject to examination, by the Internal Revenue Service for the calendar year 2013 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination as well as subsequent periods. In October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. On October 4, 2017, the European Commission announced its decision that determinations by the tax authorities in Luxembourg did not comply with European Union rules on state aid. Based on that decision, the European Commission announced an estimated recovery amount of approximately €250 million, plus interest, for the period May 2006 through June 2014, and ordered Luxembourg tax authorities to calculate the actual amount of additional taxes subject to recovery. Luxembourg computed an initial recovery amount, consistent with the European Commission’s decision, which we deposited into escrow in March 2018, subject to adjustment pending conclusion of all appeals. In December 2017, Luxembourg appealed the European Commission’s decision. In May 2018, we appealed. On May 12, 2021, the European Union General Court annulled the European Commission’s state aid decision. In July 2021, the European Commission appealed the decision to the European Court of Justice. We will continue to defend ourselves vigorously in this matter. We are also subject to taxation in various states and other foreign jurisdictions including China, Germany, India, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2009 and thereafter.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and content,” “Marketing,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue transactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company’s business performance and manages its operations. North America The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores. This segment includes export sales from these online stores. International The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores. AWS The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions. Information on reportable segments and reconciliation to consolidated net income is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 North America Net sales $ 59,373 $ 65,557 $ 160,936 $ 197,473 Operating expenses 57,121 64,677 155,232 189,996 Operating income $ 2,252 $ 880 $ 5,704 $ 7,477 International Net sales $ 25,171 $ 29,145 $ 66,945 $ 90,515 Operating expenses 24,764 30,056 66,590 89,812 Operating income (loss) $ 407 $ (911) $ 355 $ 703 AWS Net sales $ 11,601 $ 16,110 $ 32,628 $ 44,422 Operating expenses 8,066 11,227 22,661 31,183 Operating income $ 3,535 $ 4,883 $ 9,967 $ 13,239 Consolidated Net sales $ 96,145 $ 110,812 $ 260,509 $ 332,410 Operating expenses 89,951 105,960 244,483 310,991 Operating income 6,194 4,852 16,026 21,419 Total non-operating income (expense) 615 (537) 387 1,798 Provision for income taxes (569) (1,155) (2,298) (4,179) Equity-method investment activity, net of tax 91 (4) (6) 3 Net income $ 6,331 $ 3,156 $ 14,109 $ 19,041 Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Net Sales: Online stores (1) $ 48,350 $ 49,942 $ 130,899 $ 156,000 Physical stores (2) 3,788 4,269 12,201 12,387 Third-party seller services (3) 20,436 24,252 53,121 73,046 Subscription services (4) 6,572 8,148 18,146 23,645 AWS 11,601 16,110 32,628 44,422 Other (5) 5,398 8,091 13,514 22,910 Consolidated $ 96,145 $ 110,812 $ 260,509 $ 332,410 ____________________________ (1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” (2) Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” (3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. (4) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.

Accounting Policies and Suppl_2

Accounting Policies and Supplemental Disclosures (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Unaudited Interim Financial Information	Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2021 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2020 Annual Report on Form 10-K.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of its wholly-owned subsidiaries and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and certain entities that support our seller lending financing activities. Intercompany balances and transactions between consolidated entities are eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, and valuation and impairment of investments. Actual results could differ materially from these estimates.
Earnings Per Share	Earnings Per Share Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect.
Inventories	Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The inventory valuation allowance, representing a write-down of inventory, was $2.3 billion and $2.4 billion as of December 31, 2020 and September 30, 2021.
Accounts Receivable, Net and Other	Accounts Receivable, Net and Other Included in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2020 and September 30, 2021, customer receivables, net, were $14.8 billion and $17.7 billion, vendor receivables, net, were $4.8 billion and $4.0 billion, and seller receivables, net, were $381 million and $858 million. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory. We estimate losses on receivables based on expected losses, including our historical experience of actual losses. The allowance for doubtful accounts was $1.1 billion and $951 million as of December 31, 2020 and September 30, 2021.
Digital Video and Music Content	Digital Video and Music Content The total capitalized costs of video, which is primarily released content, and music as of December 31, 2020 and September 30, 2021 were $6.8 billion and $10.1 billion. Total video and music expense was $2.8 billion and $3.3 billion in Q3 2020 and Q3 2021, and $8.0 billion and $9.4 billion for the nine months ended September 30, 2020 and 2021.
Unearned Revenue	Unearned Revenue Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2020 was $11.6 billion, of which $8.4 billion was recognized as revenue during the nine months ended September 30, 2021. Included in “Other long-term liabilities” on our consolidated balance sheets was $1.9 billion and $2.0 billion of unearned revenue as of December 31, 2020 and September 30, 2021. Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $66.3 billion as of September 30, 2021. The weighted-average remaining life of our long-term contracts is 3.7 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.

Accounting Policies and Suppl_3

Accounting Policies and Supplemental Disclosures (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Supplemental Cash Flow Information	The following table shows supplemental cash flow information (in millions): Three Months Ended Nine Months Ended Twelve Months Ended 2020 2021 2020 2021 2020 2021 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt $ 285 $ 276 $ 715 $ 731 $ 869 $ 933 Cash paid for operating leases 1,159 1,812 3,275 5,029 4,215 6,230 Cash paid for interest on finance leases 155 121 484 407 650 535 Cash paid for interest on financing obligations 28 48 71 116 90 147 Cash paid for income taxes, net of refunds 502 750 1,293 3,354 1,481 3,774 Assets acquired under operating leases 6,115 10,447 11,870 19,561 14,346 23,908 Property and equipment acquired under finance leases 3,571 1,744 8,892 5,453 13,075 8,149 Property and equipment acquired under build-to-suit arrangements 366 1,721 1,228 3,702 1,480 4,742
Calculation of Diluted Shares	The following table shows the calculation of diluted shares (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Shares used in computation of basic earnings per share 501 507 500 505 Total dilutive effect of outstanding stock awards 11 8 9 9 Shares used in computation of diluted earnings per share 512 515 509 514
Other Income (Expense), Net	Other income (expense), net, is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Marketable equity securities valuation gains (losses) $ 200 $ (129) $ 404 $ (48) Equity warrant valuation gains (losses) 300 (50) 566 1,194 Upward adjustments relating to equity investments in private companies 320 155 320 1,661 Foreign currency gains (losses) 112 (107) (97) (28) Other, net (7) (32) (28) 16 Total other income (expense), net 925 (163) 1,165 2,795

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Fair Value by Major Security Type	The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): December 31, 2020 September 30, 2021 Total Cost or Gross Gross Total Cash $ 10,063 $ 10,083 $ — — $ 10,083 Level 1 securities: Money market funds 27,430 18,000 — — 18,000 Equity securities (1) 617 1,633 Level 2 securities: Foreign government and agency securities 5,131 178 1 — 179 U.S. government and agency securities 7,439 5,385 15 (7) 5,393 Corporate debt securities 29,988 36,775 152 (17) 36,910 Asset-backed securities 3,235 5,936 17 (5) 5,948 Other fixed income securities 710 714 4 (1) 717 Equity securities (1) 40 361 $ 84,653 $ 77,071 $ 189 $ (30) $ 79,224 Less: Restricted cash, cash equivalents, and marketable securities (2) (257) (236) Total cash, cash equivalents, and marketable securities $ 84,396 $ 78,988 ___________________ (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $150 million and $(116) million in Q3 2020 and Q3 2021, and $351 million and $6 million for the nine months ended September 30, 2020 and 2021. (2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.”
Investments Classified by Contractual Maturity Date	The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of September 30, 2021 (in millions): Amortized Estimated Due within one year $ 38,618 $ 38,628 Due after one year through five years 22,603 22,735 Due after five years through ten years 1,809 1,814 Due after ten years 3,958 3,970 Total $ 66,988 $ 67,147
Consolidated Statements of Cash Flow Reconciliation - Cash and Cash Equivalents	The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions): December 31, 2020 September 30, 2021 Cash and cash equivalents $ 42,122 $ 29,944 Restricted cash included in accounts receivable, net and other 233 218 Restricted cash included in other assets 22 15 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 42,377 $ 30,177
Consolidated Statements of Cash Flow Reconciliation - Restricted Cash	The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions): December 31, 2020 September 30, 2021 Cash and cash equivalents $ 42,122 $ 29,944 Restricted cash included in accounts receivable, net and other 233 218 Restricted cash included in other assets 22 15 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 42,377 $ 30,177

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Lease Cost	Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Operating lease cost $ 1,334 $ 1,911 $ 3,551 $ 5,129 Finance lease cost: Amortization of lease assets 2,200 2,497 6,123 7,442 Interest on lease liabilities 154 114 474 365 Finance lease cost 2,354 2,611 6,597 7,807 Variable lease cost 308 372 866 1,135 Total lease cost $ 3,996 $ 4,894 $ 11,014 $ 14,071
Other Information about Lease Amounts Recognized	Other information about lease amounts recognized in our consolidated financial statements is as follows: December 31, 2020 September 30, 2021 Weighted-average remaining lease term – operating leases 10.7 years 11.3 years Weighted-average remaining lease term – finance leases 6.2 years 7.4 years Weighted-average discount rate – operating leases 2.5 % 2.3 % Weighted-average discount rate – finance leases 2.1 % 2.1 %
Lease Liabilities	Our lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance Leases Total Gross lease liabilities $ 44,833 $ 30,437 $ 75,270 Less: imputed interest (5,734) (2,003) (7,737) Present value of lease liabilities 39,099 28,434 67,533 Less: current portion of lease liabilities (4,586) (10,374) (14,960) Total long-term lease liabilities $ 34,513 $ 18,060 $ 52,573 September 30, 2021 Operating Leases Finance Leases Total Gross lease liabilities $ 61,591 $ 26,618 $ 88,209 Less: imputed interest (7,637) (2,099) (9,736) Present value of lease liabilities 53,954 24,519 78,473 Less: current portion of lease liabilities (5,913) (8,712) (14,625) Total long-term lease liabilities $ 48,041 $ 15,807 $ 63,848

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Principal Contractual Commitments, Excluding Open Orders for Purchases	The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of September 30, 2021 (in millions): Three Months Ended December 31, Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Total Long-term debt principal and interest $ 1,418 $ 2,872 $ 4,636 $ 7,014 $ 3,400 $ 56,612 $ 75,952 Operating lease liabilities 1,761 7,026 6,608 6,074 5,576 34,546 61,591 Finance lease liabilities, including interest 2,087 8,331 4,620 2,105 1,202 8,273 26,618 Financing obligations, including interest (1) 98 393 399 397 387 6,427 8,101 Leases not yet commenced 266 1,448 1,878 2,094 2,096 23,973 31,755 Unconditional purchase obligations (2) 423 5,819 5,525 5,009 4,188 13,626 34,590 Other commitments (3)(4) 1,785 3,235 1,524 1,164 957 11,629 20,294 Total commitments $ 7,838 $ 29,124 $ 25,190 $ 23,857 $ 17,806 $ 155,086 $ 258,901 ___________________ (1) Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $111 million and $185 million are recorded within “Accrued expenses and other” and $3.4 billion and $5.8 billion are recorded within “Other long-term liabilities” as of December 31, 2020 and September 30, 2021. The weighted-average remaining term of the financing obligations was 19.0 and 19.1 years and the weighted-average imputed interest rate was 3.8% and 3.4% as of December 31, 2020 and September 30, 2021. (2) Includes unconditional purchase obligations related to certain products offered in our Whole Foods Market stores and long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those digital media content agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. (3) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction, asset retirement obligations, and liabilities associated with digital media content agreements with initial terms greater than one year. (4) Excludes approximately $2.9 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Long-Term Debt Obligations	Our total long-term debt obligations are as follows (in millions): Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2020 September 30, 2021 2012 Notes issuance of $3.0 billion 2022 2.50% 2.66% 1,250 1,250 2014 Notes issuance of $6.0 billion 2021 - 2044 3.30% - 4.95% 3.43% - 5.11% 5,000 5,000 2017 Notes issuance of $17.0 billion 2023 - 2057 2.40% - 5.20% 2.56% - 4.33% 16,000 16,000 2020 Notes issuance of $10.0 billion 2023 - 2060 0.40% - 2.70% 0.56% - 2.77% 10,000 10,000 2021 Notes issuance of $18.5 billion 2023 - 2061 0.25% - 3.25% 0.35% - 3.31% — 18,500 Credit Facility 338 626 Other long-term debt 586 — Total face value of long-term debt 33,174 51,376 Unamortized discount and issuance costs, net (203) (321) Less current portion of long-term debt (1,155) (1,000) Long-term debt $ 31,816 $ 50,055 ___________________ (1) The weighted-average remaining lives of the 2012, 2014, 2017, 2020, and 2021 Notes were 1.2, 11.1, 15.5, 18.0, and 14.6 years as of September 30, 2021. The combined weighted-average remaining life of the Notes was 14.8 years as of September 30, 2021.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Stock-Based Compensation Expense	Stock-based compensation expense is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Cost of sales $ 75 $ 126 $ 193 $ 361 Fulfillment 316 473 993 1,381 Technology and content 1,267 1,627 3,649 4,742 Marketing 446 657 1,233 1,804 General and administrative 184 297 578 789 Total stock-based compensation expense $ 2,288 $ 3,180 $ 6,646 $ 9,077
Restricted Stock Unit Activity	The following table summarizes our restricted stock unit activity for the nine months ended September 30, 2021 (in millions): Number of Units Weighted-Average Outstanding as of December 31, 2020 15.2 $ 2,004 Units granted 5.7 3,334 Units vested (3.7) 1,624 Units forfeited (1.6) 2,232 Outstanding as of September 30, 2021 15.6 2,552
Scheduled Vesting for Outstanding Restricted Stock Units	Scheduled vesting for outstanding restricted stock units as of September 30, 2021, is as follows (in millions): Three Months Ended December 31, Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Total Scheduled vesting — restricted stock units 1.8 5.5 5.2 2.1 0.7 0.3 15.6
Changes in Stockholders' Equity	The following table shows changes in stockholders’ equity (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Total beginning stockholders’ equity $ 73,728 $ 114,803 $ 62,060 $ 93,404 Beginning and ending common stock 5 5 5 5 Beginning and ending treasury stock (1,837) (1,837) (1,837) (1,837) Beginning additional paid-in capital 38,017 48,724 33,658 42,865 Stock-based compensation and issuance of employee benefit plan stock 2,290 3,155 6,649 9,014 Ending additional paid-in capital 40,307 51,879 40,307 51,879 Beginning accumulated other comprehensive income (loss) (1,455) (525) (986) (180) Other comprehensive income (loss) 426 (550) (43) (895) Ending accumulated other comprehensive income (loss) (1,029) (1,075) (1,029) (1,075) Beginning retained earnings 38,998 68,436 31,220 52,551 Net income 6,331 3,156 14,109 19,041 Ending retained earnings 45,329 71,592 45,329 71,592 Total ending stockholders’ equity $ 82,775 $ 120,564 $ 82,775 $ 120,564

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Information on Reportable Segments and Reconciliation to Consolidated Net Income	Information on reportable segments and reconciliation to consolidated net income is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 North America Net sales $ 59,373 $ 65,557 $ 160,936 $ 197,473 Operating expenses 57,121 64,677 155,232 189,996 Operating income $ 2,252 $ 880 $ 5,704 $ 7,477 International Net sales $ 25,171 $ 29,145 $ 66,945 $ 90,515 Operating expenses 24,764 30,056 66,590 89,812 Operating income (loss) $ 407 $ (911) $ 355 $ 703 AWS Net sales $ 11,601 $ 16,110 $ 32,628 $ 44,422 Operating expenses 8,066 11,227 22,661 31,183 Operating income $ 3,535 $ 4,883 $ 9,967 $ 13,239 Consolidated Net sales $ 96,145 $ 110,812 $ 260,509 $ 332,410 Operating expenses 89,951 105,960 244,483 310,991 Operating income 6,194 4,852 16,026 21,419 Total non-operating income (expense) 615 (537) 387 1,798 Provision for income taxes (569) (1,155) (2,298) (4,179) Equity-method investment activity, net of tax 91 (4) (6) 3 Net income $ 6,331 $ 3,156 $ 14,109 $ 19,041
Disaggregation of Revenue	Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions): Three Months Ended Nine Months Ended 2020 2021 2020 2021 Net Sales: Online stores (1) $ 48,350 $ 49,942 $ 130,899 $ 156,000 Physical stores (2) 3,788 4,269 12,201 12,387 Third-party seller services (3) 20,436 24,252 53,121 73,046 Subscription services (4) 6,572 8,148 18,146 23,645 AWS 11,601 16,110 32,628 44,422 Other (5) 5,398 8,091 13,514 22,910 Consolidated $ 96,145 $ 110,812 $ 260,509 $ 332,410 ____________________________ (1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” (2) Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” (3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. (4) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.

Accounting Policies and Suppl_4

Accounting Policies and Supplemental Disclosures - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Cash paid for interest on debt	$ 276	$ 285	$ 731	$ 715	$ 933	$ 869
Cash paid for operating leases	1,812	1,159	5,029	3,275	6,230	4,215
Cash paid for interest on finance leases	121	155	407	484	535	650
Cash paid for interest on financing obligations	48	28	116	71	147	90
Cash paid for income taxes, net of refunds	750	502	3,354	1,293	3,774	1,481
Assets acquired under operating leases	10,447	6,115	19,561	11,870	23,908	14,346
Property and equipment acquired under finance leases	1,744	3,571	5,453	8,892	8,149	13,075
Property and equipment acquired under build-to-suit arrangements	$ 1,721	$ 366	$ 3,702	$ 1,228	$ 4,742	$ 1,480

Accounting Policies and Suppl_5

Accounting Policies and Supplemental Disclosures - Calculation of Diluted Shares (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Shares used in computation of basic earnings per share (in shares)	507	501	505	500
Total dilutive effect of outstanding stock awards (in shares)	8	11	9	9
Shares used in computation of diluted earnings per share (in shares)	515	512	514	509

Accounting Policies and Suppl_6

Accounting Policies and Supplemental Disclosures - Other Income (Expense), Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Marketable equity securities valuation gains (losses)	$ (129)	$ 200	$ (48)	$ 404
Equity warrant valuation gains (losses)	(50)	300	1,194	566
Upward adjustments relating to equity investments in private companies	155	320	1,661	320
Foreign currency gains (losses)	(107)	112	(28)	(97)
Other, net	(32)	(7)	16	(28)
Total other income (expense), net	$ (163)	$ 925	$ 2,795	$ 1,165

Accounting Policies and Suppl_7

Accounting Policies and Supplemental Disclosures - Inventories (Details) - USD ($) $ in Billions	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Inventory valuation allowance	$ 2.4	$ 2.3

Accounting Policies and Suppl_8

Accounting Policies and Supplemental Disclosures - Accounts Receivable, Net and Other (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	$ 28,610	$ 24,542
Allowance for doubtful accounts	951	1,100
Customer receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	17,700	14,800
Vendor receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	4,000	4,800
Seller receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	$ 858	$ 381

Accounting Policies and Suppl_9

Accounting Policies and Supplemental Disclosures - Video and Music Content (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Digital video and music content, capitalized costs	$ 10.1		$ 10.1		$ 6.8
Digital video and music content, expense	$ 3.3	$ 2.8	$ 9.4	$ 8

Accounting Policies and Supp_10

Accounting Policies and Supplemental Disclosures - Unearned Revenue (Details) - USD ($) $ in Billions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Unearned revenue		$ 11.6
Unearned revenue, revenue recognized	$ 8.4
Unearned revenue, long-term	2	$ 1.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Accounting Policies [Abstract]
Remaining performance obligation, contracts exceeding one year	$ 66.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, weighted average remaining life	3 years 8 months 12 days

Financial Instruments - Fair Va

Financial Instruments - Fair Values on Recurring Basis (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Equity Securities, FV-NI, Gain (Loss)
Equity securities, unrealized gain (loss)	$ (116)	$ 150	$ 6	$ 351
Recurring
Schedule of Investments [Line Items]
Cash	10,083		10,083		$ 10,063
Debt Securities, Available-for-sale
Gross unrealized gains	189		189
Gross unrealized losses	(30)		(30)
Cash, Cash Equivalents, and Marketable Securities
Cash, cash equivalents and marketable securities	79,224		79,224		84,653
Cash, cash equivalents and marketable securities, amortized cost	77,071		77,071
Less: Restricted cash, cash equivalents, and marketable securities	(236)		(236)		(257)
Total cash, cash equivalents, and marketable securities	78,988		78,988		84,396
Recurring | Level 1 securities
Schedule of Investments [Line Items]
Equity securities	1,633		1,633		617
Recurring | Level 1 securities | Money market funds
Schedule of Investments [Line Items]
Money market funds	18,000		18,000		27,430
Recurring | Level 1 securities | Money market funds | Money market funds
Schedule of Investments [Line Items]
Money market funds	18,000		18,000
Recurring | Level 2 securities
Schedule of Investments [Line Items]
Equity securities	361		361		40
Recurring | Level 2 securities | Foreign government and agency securities
Debt Securities, Available-for-sale
Fixed income securities, amortized cost	178		178
Gross unrealized gains	1		1
Gross unrealized losses	0		0
Fixed income securities	179		179		5,131
Recurring | Level 2 securities | U.S. government and agency securities
Debt Securities, Available-for-sale
Fixed income securities, amortized cost	5,385		5,385
Gross unrealized gains	15		15
Gross unrealized losses	(7)		(7)
Fixed income securities	5,393		5,393		7,439
Recurring | Level 2 securities | Corporate debt securities
Debt Securities, Available-for-sale
Fixed income securities, amortized cost	36,775		36,775
Gross unrealized gains	152		152
Gross unrealized losses	(17)		(17)
Fixed income securities	36,910		36,910		29,988
Recurring | Level 2 securities | Asset-backed securities
Debt Securities, Available-for-sale
Fixed income securities, amortized cost	5,936		5,936
Gross unrealized gains	17		17
Gross unrealized losses	(5)		(5)
Fixed income securities	5,948		5,948		3,235
Recurring | Level 2 securities | Other fixed income securities
Debt Securities, Available-for-sale
Fixed income securities, amortized cost	714		714
Gross unrealized gains	4		4
Gross unrealized losses	(1)		(1)
Fixed income securities	$ 717		$ 717		$ 710

Financial Instruments - Contrac

Financial Instruments - Contractual Maturities (Details) $ in Millions	Sep. 30, 2021USD ($)
Amortized Cost
Due within one year	$ 38,618
Due after one year through five years	22,603
Due after five years through ten years	1,809
Due after ten years	3,958
Amortized cost	66,988
Estimated Fair Value
Due within one year	38,628
Due after one year through five years	22,735
Due after five years through ten years	1,814
Due after ten years	3,970
Estimated fair value	$ 67,147

Financial Instruments - Equity

Financial Instruments - Equity Warrants and Non-Marketable Equity Investments (Details) - USD ($) $ in Billions	Sep. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Equity investments without readily determinable fair values, ownership interest	20.00%	20.00%
Equity investments without readily determinable fair values	$ 3.8	$ 2.7
Warrant | Level 2 assets
Derivative [Line Items]
Fair value of warrant assets	$ 3.4	$ 3

Financial Instruments - Consoli

Financial Instruments - Consolidated Statements of Cash Flows Reconciliation (Details) - USD ($) $ in Millions	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Cash and cash equivalents	$ 29,944		$ 42,122
Restricted cash included in accounts receivable, net and other	218		233
Restricted cash included in other assets	15		22
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$ 30,177	$ 40,667	$ 42,377	$ 30,202	$ 37,842	$ 36,410	$ 23,554

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Billions	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Gross assets acquired under finance leases	$ 71.3	$ 68.1
Accumulated amortization associated with finance leases	$ 41.7	$ 36.5

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating lease cost	$ 1,911	$ 1,334	$ 5,129	$ 3,551
Finance lease cost:
Amortization of lease assets	2,497	2,200	7,442	6,123
Interest on lease liabilities	114	154	365	474
Finance lease cost	2,611	2,354	7,807	6,597
Variable lease cost	372	308	1,135	866
Total lease cost	$ 4,894	$ 3,996	$ 14,071	$ 11,014

Leases - Other Operating and Fi

Leases - Other Operating and Finance Lease Information (Details)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term – operating leases	11 years 3 months 18 days	10 years 8 months 12 days
Weighted-average remaining lease term – finance leases	7 years 4 months 24 days	6 years 2 months 12 days
Weighted-average discount rate – operating leases	2.30%	2.50%
Weighted-average discount rate – finance leases	2.10%	2.10%

Leases - Operating and Finance

Leases - Operating and Finance Lease Liability Reconciliation (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Total operating lease liabilities	$ 61,591	$ 44,833
Total finance lease liabilities	26,618	30,437
Gross lease liabilities	88,209	75,270
Imputed interest - operating leases	(7,637)	(5,734)
Imputed interest - finance leases	(2,099)	(2,003)
Imputed interest	(9,736)	(7,737)
Present value of operating leases	53,954	39,099
Present value of finance leases	24,519	28,434
Present value of lease liabilities	$ 78,473	$ 67,533
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other	Accrued expenses and other
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other	Accrued expenses and other
Current portion of operating lease liabilities	$ (5,913)	$ (4,586)
Current portion of finance lease liabilities	(8,712)	(10,374)
Current portion of lease liabilities	(14,625)	(14,960)
Total long-term operating lease liabilities	48,041	34,513
Total long-term finance lease liabilities	15,807	18,060
Total long-term lease liabilities	$ 63,848	$ 52,573
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total long-term lease liabilities	Total long-term lease liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total long-term lease liabilities	Total long-term lease liabilities

Commitments and Contingencies -

Commitments and Contingencies - Commitments (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020	May 31, 2021
Long-term debt principal and interest
2021	$ 1,418
2022	2,872
2023	4,636
2024	7,014
2025	3,400
Thereafter	56,612
Thereafter	75,952
Operating lease liabilities
2021	1,761
2022	7,026
2023	6,608
2024	6,074
2025	5,576
Thereafter	34,546
Total operating lease liabilities	61,591	$ 44,833
Finance lease liabilities, including interest
2021	2,087
2022	8,331
2023	4,620
2024	2,105
2025	1,202
Thereafter	8,273
Total finance lease liabilities	26,618	30,437
Financing obligations, including interest
2021	98
2022	393
2023	399
2024	397
2025	387
Thereafter	6,427
Total	8,101
Leases not yet commenced
2021	266
2022	1,448
2023	1,878
2024	2,094
2025	2,096
Thereafter	23,973
Total	31,755
Unconditional purchase obligations
2021	423
2022	5,819
2023	5,525
2024	5,009
2025	4,188
Thereafter	13,626
Total	34,590
Other commitments
2021	1,785
2022	3,235
2023	1,524
2024	1,164
2025	957
Thereafter	11,629
Total	20,294
Total commitments
2021	7,838
2022	29,124
2023	25,190
2024	23,857
2025	17,806
Thereafter	155,086
Total	258,901
Financing obligations, current	185	111
Financing obligations, noncurrent	$ 5,800	$ 3,400
Financing obligations, weighted-average remaining term	19 years 1 month 6 days	19 years
Financing obligations, weighted-average imputed interest rate	3.40%	3.80%
Accrued tax contingencies	$ 2,900	$ 2,800
MGM Holdings Inc.
Business Acquisition [Line Items]
Acquisition price			$ 8,500

Debt - Additional Information (

Debt - Additional Information (Details)	9 Months Ended
	Sep. 30, 2021USD ($)extension	Sep. 30, 2021EUR (€)	Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Total face value of long-term debt	$ 51,376,000,000		$ 33,174,000,000
Commercial Paper
Debt Instrument [Line Items]
Commercial paper, maximum borrowing capacity	$ 10,000,000,000	€ 3,000,000,000
Commercial paper, term (will not exceed)	397 days
Commercial paper	$ 725,000,000		$ 725,000,000
Commercial paper, weighted average effective interest rate	0.07%	0.07%	0.11%
Senior Notes
Debt Instrument [Line Items]
Total face value of long-term debt	$ 50,700,000,000
Estimated fair value of notes	54,300,000,000		$ 37,700,000,000
Senior Notes | 2021 Notes issuance of $18.5 billion
Debt Instrument [Line Items]
Total face value of long-term debt	18,500,000,000		0
Issuance amount	18,500,000,000
Senior Notes | 2021 Notes issuance of $18.5 billion | Green or social projects
Debt Instrument [Line Items]
Issuance amount	1,000,000,000
Other long-term debt and credit facility
Debt Instrument [Line Items]
Total face value of long-term debt	626,000,000		924,000,000
Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Total face value of long-term debt	626,000,000		338,000,000
Credit Facility | Revolving Credit Facility | October 2016 Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility maximum borrowing capacity	$ 740,000,000
Commitment fee percentage	0.50%
Borrowings outstanding	$ 626,000,000		$ 338,000,000
Weighted average interest rate	2.80%	2.80%	3.00%
Collateral amount	$ 719,000,000		$ 398,000,000
Credit Facility | Revolving Credit Facility | October 2016 Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.40%
Credit Facility | Revolving Credit Facility | April 2018 Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility maximum borrowing capacity	$ 7,000,000,000
Commitment fee percentage	0.04%
Borrowings outstanding	$ 0		$ 0
Number of term extensions | extension	3
Additional term	1 year
Credit Facility | Revolving Credit Facility | April 2018 Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Credit Facility | Letter of Credit | April 2018 Revolving Credit Facility
Debt Instrument [Line Items]
Unused letters of credit	$ 6,900,000,000

Debt - Long-Term Debt Obligatio

Debt - Long-Term Debt Obligations (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Face value of long-term debt	$ 51,376,000,000	$ 33,174,000,000
Less current portion of long-term debt	(1,000,000,000)	(1,155,000,000)
Long-term debt	50,055,000,000	31,816,000,000
Senior Notes
Debt Instrument [Line Items]
Face value of long-term debt	50,700,000,000
Unamortized discount and issuance costs, net	$ (321,000,000)	(203,000,000)
Weighted average remaining lives term	14 years 9 months 18 days
Senior Notes | 2012 Notes issuance of $3.0 billion
Debt Instrument [Line Items]
Issuance amount	$ 3,000,000,000
Stated Interest Rates	2.50%
Effective Interest Rates	2.66%
Face value of long-term debt	$ 1,250,000,000	1,250,000,000
Weighted average remaining lives term	1 year 2 months 12 days
Senior Notes | 2014 Notes issuance of $6.0 billion
Debt Instrument [Line Items]
Issuance amount	$ 6,000,000,000
Face value of long-term debt	$ 5,000,000,000	5,000,000,000
Weighted average remaining lives term	11 years 1 month 6 days
Senior Notes | 2014 Notes issuance of $6.0 billion | Minimum
Debt Instrument [Line Items]
Stated Interest Rates	3.30%
Effective Interest Rates	3.43%
Senior Notes | 2014 Notes issuance of $6.0 billion | Maximum
Debt Instrument [Line Items]
Stated Interest Rates	4.95%
Effective Interest Rates	5.11%
Senior Notes | 2017 Notes issuance of $17.0 billion
Debt Instrument [Line Items]
Issuance amount	$ 17,000,000,000
Face value of long-term debt	$ 16,000,000,000	16,000,000,000
Weighted average remaining lives term	15 years 6 months
Senior Notes | 2017 Notes issuance of $17.0 billion | Minimum
Debt Instrument [Line Items]
Stated Interest Rates	2.40%
Effective Interest Rates	2.56%
Senior Notes | 2017 Notes issuance of $17.0 billion | Maximum
Debt Instrument [Line Items]
Stated Interest Rates	5.20%
Effective Interest Rates	4.33%
Senior Notes | 2020 Notes issuance of $10.0 billion
Debt Instrument [Line Items]
Issuance amount	$ 10,000,000,000
Face value of long-term debt	$ 10,000,000,000	10,000,000,000
Weighted average remaining lives term	18 years
Senior Notes | 2020 Notes issuance of $10.0 billion | Minimum
Debt Instrument [Line Items]
Stated Interest Rates	0.40%
Effective Interest Rates	0.56%
Senior Notes | 2020 Notes issuance of $10.0 billion | Maximum
Debt Instrument [Line Items]
Stated Interest Rates	2.70%
Effective Interest Rates	2.77%
Senior Notes | 2021 Notes issuance of $18.5 billion
Debt Instrument [Line Items]
Issuance amount	$ 18,500,000,000
Face value of long-term debt	$ 18,500,000,000	0
Weighted average remaining lives term	14 years 7 months 6 days
Senior Notes | 2021 Notes issuance of $18.5 billion | Green or social projects
Debt Instrument [Line Items]
Issuance amount	$ 1,000,000,000
Senior Notes | 2021 Notes issuance of $18.5 billion | Minimum
Debt Instrument [Line Items]
Stated Interest Rates	0.25%
Effective Interest Rates	0.35%
Senior Notes | 2021 Notes issuance of $18.5 billion | Maximum
Debt Instrument [Line Items]
Stated Interest Rates	3.25%
Effective Interest Rates	3.31%
Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Face value of long-term debt	$ 626,000,000	338,000,000
Other long-term debt
Debt Instrument [Line Items]
Face value of long-term debt	$ 0	$ 586,000,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) shares in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Feb. 29, 2016
Class of Stock [Line Items]
Common shares outstanding plus underlying outstanding stock awards (in shares)	523		518
Net unrecognized compensation cost related to unvested stock-based compensation arrangements	$ 18,200,000,000
Compensation cost expected to be expensed in next twelve months, percentage	50.00%
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years)	1 year 1 month 6 days
Estimated forfeiture rate	27.00%		27.00%
February 2016 Program
Class of Stock [Line Items]
Stock repurchase, authorized amount				$ 5,000,000,000
Stock repurchases	$ 0	$ 0

Stockholders' Equity - Stock-ba

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 3,180	$ 2,288	$ 9,077	$ 6,646
Cost of sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	126	75	361	193
Fulfillment
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	473	316	1,381	993
Technology and content
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,627	1,267	4,742	3,649
Marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	657	446	1,804	1,233
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 297	$ 184	$ 789	$ 578

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Millions	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of Units
Beginning balance (in shares) | shares	15.2
Units granted (in shares) | shares	5.7
Units vested (in shares) | shares	(3.7)
Units forfeited (in shares) | shares	(1.6)
Ending balance (in shares) | shares	15.6
Weighted-Average Grant-Date Fair Value
Beginning balance (in usd per share) | $ / shares	$ 2,004
Units granted (in usd per share) | $ / shares	3,334
Units vested (in usd per share) | $ / shares	1,624
Units forfeited (in usd per share) | $ / shares	2,232
Ending balance (in usd per share) | $ / shares	$ 2,552

Stockholders' Equity - Schedule

Stockholders' Equity - Scheduled Vesting for Outstanding Restricted Stock Units (Details) - Restricted Stock Units - shares shares in Millions	Sep. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2021 (in shares)	1.8
2022 (in shares)	5.5
2023 (in shares)	5.2
2024 (in shares)	2.1
2025 (in shares)	0.7
Thereafter (in shares)	0.3
Total (in shares)	15.6	15.2

Stockholders' Equity - Changes

Stockholders' Equity - Changes in Stockholders Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Changes in Stockholders' Equity
Beginning balance	$ 114,803	$ 73,728	$ 93,404	$ 62,060	$ 82,775
Other comprehensive income (loss)	(550)	426	(895)	(43)
Net Income	3,156	6,331	19,041	14,109	26,263	$ 17,377
Ending balance	120,564	82,775	120,564	82,775	120,564	82,775
Common stock
Changes in Stockholders' Equity
Beginning balance	5	5	5	5	5
Ending balance	5	5	5	5	5	5
Treasury stock
Changes in Stockholders' Equity
Beginning balance	(1,837)	(1,837)	(1,837)	(1,837)	(1,837)
Ending balance	(1,837)	(1,837)	(1,837)	(1,837)	(1,837)	(1,837)
Additional paid-in capital
Changes in Stockholders' Equity
Beginning balance	48,724	38,017	42,865	33,658	40,307
Stock-based compensation and issuance of employee benefit plan stock	3,155	2,290	9,014	6,649
Ending balance	51,879	40,307	51,879	40,307	51,879	40,307
Accumulated other comprehensive income (loss)
Changes in Stockholders' Equity
Beginning balance	(525)	(1,455)	(180)	(986)	(1,029)
Other comprehensive income (loss)	(550)	426	(895)	(43)
Ending balance	(1,075)	(1,029)	(1,075)	(1,029)	(1,075)	(1,029)
Retained earnings
Changes in Stockholders' Equity
Beginning balance	68,436	38,998	52,551	31,220	45,329
Net Income	3,156	6,331	19,041	14,109
Ending balance	$ 71,592	$ 45,329	$ 71,592	$ 45,329	$ 71,592	$ 45,329

Income Taxes (Details)

Income Taxes (Details) € in Millions, $ in Millions	Oct. 04, 2017EUR (€)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Income Tax Disclosure [Abstract]
Provision for income taxes		$ 1,155	$ 569	$ 4,179	$ 2,298
Discrete tax benefits				1,700	1,500
Cash paid for income taxes, net of refunds		750	$ 502	3,354	$ 1,293	$ 3,774	$ 1,481
Tax contingencies		$ 2,900		$ 2,900		$ 2,900		$ 2,800
Luxembourg Tax Administration | Foreign Tax Authority
Income Tax Examination [Line Items]
Tax examination, estimate of additional tax expense | €	€ 250

Segment Information - Reportabl

Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Details) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			3
Segment Reporting Disclosure [Line Items]
Net sales	$ 110,812	$ 96,145	$ 332,410	$ 260,509
Operating expenses	105,960	89,951	310,991	244,483
Operating income	4,852	6,194	21,419	16,026
Total non-operating income (expense)	(537)	615	1,798	387
Provision for income taxes	(1,155)	(569)	(4,179)	(2,298)
Equity-method investment activity, net of tax	(4)	91	3	(6)
Net income	3,156	6,331	19,041	14,109	$ 26,263	$ 17,377
North America
Segment Reporting Disclosure [Line Items]
Net sales	65,557	59,373	197,473	160,936
Operating expenses	64,677	57,121	189,996	155,232
Operating income	880	2,252	7,477	5,704
International
Segment Reporting Disclosure [Line Items]
Net sales	29,145	25,171	90,515	66,945
Operating expenses	30,056	24,764	89,812	66,590
Operating income	(911)	407	703	355
AWS
Segment Reporting Disclosure [Line Items]
Net sales	16,110	11,601	44,422	32,628
Operating expenses	11,227	8,066	31,183	22,661
Operating income	$ 4,883	$ 3,535	$ 13,239	$ 9,967

Segment Information - Disaggreg

Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total net sales	$ 110,812	$ 96,145	$ 332,410	$ 260,509
Online stores
Disaggregation of Revenue [Line Items]
Total net sales	49,942	48,350	156,000	130,899
Physical stores
Disaggregation of Revenue [Line Items]
Total net sales	4,269	3,788	12,387	12,201
Third-party seller services
Disaggregation of Revenue [Line Items]
Total net sales	24,252	20,436	73,046	53,121
Subscription services
Disaggregation of Revenue [Line Items]
Total net sales	8,148	6,572	23,645	18,146
AWS
Disaggregation of Revenue [Line Items]
Total net sales	16,110	11,601	44,422	32,628
Other
Disaggregation of Revenue [Line Items]
Total net sales	$ 8,091	$ 5,398	$ 22,910	$ 13,514